I just did this and I am so happy! We put up metal pegboard panels. We found them at Lowes. You can use regular plastic pegboard panels too. (Home Depot) What I like about the panels are that it sticks out from the wall. Regular mdf pegboard panels you have to apply something to the back or frame it in order for it to stick out where you can hang hooks. The panels eliminates that extra step. I also love the metal panels because you can use magnets too if you want. In my workroom we put 5 pegboard panels up for all my tools. We also put up large shelving for extra storage for all my hoarding supplies. But, if there is anything I can hang on the pegboards...I hang it on a hook instead of being on a shelf in a container that gets lost. This way I can see everything. I still have to figure out my PAINT bottles. UGH. I have that on a shelf. As for big stuff that can hang on a wall(my ventilation mask, or my large metal rulers, I don't want to take up space on the pegboard so I find wall space and hang a gorilla hook or command hook. Just a few ideas.
Laura, you have a common problem all we crafters face. If you click on "explore projects" then "organize" then "craft room" you will find many ideas. I found one for you but there are many more: https://www.hometalk.com/1925463/getting-my-craft-closet-organized-part-one-small-home-big-ideas
Laura: this may help!
Hi Laura, I am a DIY blogger and this is my craft room. I use all kinds of unique storage... https://www.homeroad.net/2014/02/the-tiny-craft-room-with-unique-storage.html